Garnet Capital Advisors Blog

Lenders may have a very lucrative opportunity to boost their loan portfolios in the form of RV loans.

With a plethora of baby boomers hitting their retirement years, there's a resurgence in the popularity of RVs. People are retiring at an astounding rate, with approximately 10,000 baby boomers turning 65 every day in the US.

The modern retiree of today is living more for today than ever before, prompting the surge in interest in RVs. And if there isn't enough money in the retirement pot to buy in cash, specialty RV loans can be exactly what these retiring baby boomers need to hit the open road in their new motorhomes.

No matter what type of RV is being purchased - from simple towed trailers to luxurious million-dollar home-like motorhomes - recreational-vehicle loans are designed to finance them all.

Operating similar to car loans, RV loans typically involve quick approval - from as little to a few hours for smaller loans to just a few days for larger amounts. For those looking to actually live in their RVs, there are no appraisals or closing costs associated with RV loans, as there would be with conventional home mortgages.

However, considering the much larger size of RVs compared to traditional vehicles, more documentation will be needed before any financing is approved, such as pay stubs, tax returns, account statements, and company balance sheets for the self-employed.

Lenders have a distinct opportunity to grow their loan portfolios by offering RV loans.

RV Loans Provide Highly Profitable Opportunities For Lenders to Grow and Diversify Their Loan Portfolios

According to an annual survey from the Recreation Vehicle Industry Association of the sector's largest lenders, RV loan volume reached over $5 billion in 2014, with loan delinquency rates low at just 1.14 percent. RV manufacturers shipped 11.1 percent more RVs compared to the year before, further showing how popular recreational vehicles are becoming.

Lenders are increasingly noticing the potential goldmine with the RV loan sectors, who view RV loans as excellent consumer loan products when it comes to high performance and low risk.

With such easy availability of loan options for financing RVs, there's little to stand in the way for retirees to make this purchase. And savvy lenders are paying attention and capitalizing on this lucrative opportunity to expand their loan portfolios.

Having a third party that's well-versed in the world of lending and in management loan portfolios can be precisely what lenders need to identify profitable opportunities, such as adding RV loans to loan portfolios. Garnet Capital is one such expert.

With decades of experience in managing loan portfolio sales for lending institutions, Garnet Capital makes an opportune choice for lenders seeking an advisor.

While the RV loan sector certainly presents a solid money-making opportunity and an excellent way to balance a loan portfolio, there are always other opportunities on the horizon that lenders should be on the lookout for, and Garnet Capital can be the eyes and ears for buyers and sellers of loans.

Browse our white papers online by visiting GarnetCaptial.com today.